Top factors you need to know before the Opening Bell

Global cues, stock-specific action, and foreign fund flow will be the top factors that will give direction to the markets today.

The rally in telecom stocks could continue for the fourth straight session after Reliance Jio joined rivals Vodafone Idea and Airtel in announcing an increase in tariffs over the next few weeks. The share price of Vodafone Idea has surged 130 per cent while Bharti Airtel has gained 25 per cent in the last three trading sessions after announcing tariff hikes.


In another major news, private sector lender YES Bank has reported asset quality divergence of Rs 3,277 crore, based on receipt of the Reserve Bank of India’s (RBI’s) final risk assessment report for 2018-19. According to the bank, it has already classified as NPA Rs 1,259 crore as on September 30, setting aside Rs 346 crore of provisions.

That apart, market participants will also track oil price movement, the value of rupee against the dollar, and foreign fund flow.

Global markets:

In US, major indexes fell from record levels on Tuesday as US President Donald Trump threatened to raise tariffs on Chinese imports if no deal is reached with Beijing. The Dow Jones Industrial Average fell 0.36 per cent, the S&P 500 lost 0.06 per cent, and the Nasdaq Composite added 0.24 per cent.

Asian shares also lumbered lower on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.25 per cent. Japan's Nikkei eased 0.2 per cent and South Korea 0.4 per cent. The SGX Nifty was also trading lower in the early hours, indicating a subdued start for the domestic indices.

In commodities, Brent crude futures stood at $60.91 a barrel early on Wednesday, after sliding 2.6 per cent overnight.

Yesterday, benchmark indices ended with nearly half a per cent gains. The S&P BSE Sensex added 186 points to settle at 40,470, and the broader Nifty50 index ended at 11,940 levels, up 57 points.

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Sensex edges higher, Bharti Airtel surges for third day in row

Nifty is caught within a tighter trading range of 11950 and 11850: Analyst
Market heavyweights HDFC Bank, RIL and Infosys edged higher

Indian stock markets edged higher in early trade with Sensex rising 70 points to 40,356. The broader Nifty rose 0.25% to 11,913. Bharti Airtel gained 3.5%, after sharp upmove in the previous two sessions.

Other top gainers in the Sensex pack included Tech Mahindra, Axis Bank, and Yes Bank, up between 1% and 1.5%. Market heavyweights HDFC Bank, RIL and Infosys also edged higher. Some selling pressure was seen in Vedanta, Kotak Bank, Bajaj Auto and HUL, down between 0.5% and 1%.

Faced with intense competition and unprecedented statutory dues, Bharti Airtel and Vodafone Idea on Monday announced a hike in mobile phone call and data charges from December saying the increase was warranted for viability of their business. The two operators, however, did not quantify the increase in rates but said that the hike will be effective beginning next month.

"Nifty is caught within a tighter trading range of 11,950 and 11,850. A breakout of this trading range is expected soon. Resistance above 11,950 is seen close to 12,100-12,300 levels and support below 11,850 is seen around 11,739 and 11,600," Geojit Financial Services said in a note.

Asian shares were mixed today as investors remain cautious over prospects for an agreement in trade talks between the United States and China. On Wall Street, all three major indexes edged above the all-time highs they set on Friday.

The two sides are continuing to negotiate, with stock markets around the world swinging on every hint of progress or tension. (With Agency Inputs)